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SBA 7(a)
SBA 7(a) loans are part of the government insured program offering up to $5 million.
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Loan Amount
$5,000,000
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Time to Fund
30 to 90 days depending on structure
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Term Length
Up to 10 years for working capital, equipment, and inventory purchases, up to 25 years for real estate, and up to seven years for lines of credit
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What is an SBA 7(a) loan?
SBA loans are an excellent option for small businesses seeking reliable government-backed financing. SBA 7(a) loans are versatile, offering up to $5 million for working capital, equipment purchases, or real estate. They’re ideal for businesses looking for general funding to expand or manage operations. These loans often come with lower rates and longer terms, making them a smart choice for businesses looking to grow.
Eligibility requirements for SBA 7(a) loans
To qualify for an SBA 7(a) loan, businesses must meet size standards, demonstrate the ability to repay, and operate as a for-profit entity in the U.S. Lenders also assess credit history, collateral, and business financials. This loan is widely used for working capital, equipment purchases, and real estate, making it a versatile financing solution for small business owners.
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Minimum Requirements
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Credit Score
650
Monthly Revenue
No Minimum Revenue Requirement, Maximum Revenue limits depending on industry
Time in Business
No Minimum Revenue Requirement
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SBA 7(a) loans can be used for working capital, equipment purchases, real estate, debt refinancing, or business acquisitions.
The SBA 7(a) program offers loans up to $5 million, with guarantees covering up to 85% of loans under $150,000 and 75% of loans above that threshold.
SBA 7(a) loans have longer repayment terms, lower down payments, and more flexible underwriting than traditional bank loans, making them accessible to small businesses that might not qualify for conventional financing.
Yes, all owners with at least 20% ownership must provide a personal guarantee, meaning they are personally liable if the loan defaults.
Interest rates are variable and typically range from Prime + 2.75% to Prime + 4.75%, depending on loan size and term length.
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